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s people in Asia, Africa and Latin Salt Lake is perhaps the most ad- high-quality product with demand.”
AAmerica demand better diets, farm- vanced, having built its solar evaporation That demand is set to increase as
ers are switching from broad acre crops ponds and trenches on its Lake Way pro- people in emerging economies demand
of staples such as wheat, maize and rice ject near Wiluna at the start of the year. more nutritious diets.
to high-value fruit and vegetable produc- Salt Lake expects to have its process- “It has great thematics,” Salt Lake
tion. This switch comes at a price; tradi- ing plant commissioned by the end of managing director Tony Swiericzuk told
tional fertilisers are insufficient or have 2020 with Lake Way then set to produce Paydirt. “The world needs more food
too much chloride in them for use in these 245,000 tpa of SoP from the end of 2021. and in particular there is growing de-
high-value crops, leading farmers to seek This comes just five years after the mand for chloride-sensitive fruit and veg-
alternatives. company made the switch from uranium etable crops.”
Sulphate of potash (SoP) has emerged exploration in the US to WA potash. Global potash production is currently
as a key fertiliser in high-value crops. Kalium Lakes stands to be the second dominated by muriate-of-potash (MoP)
Free of chloride and other dangerous WA potash producer to hit the market, which has a 70 mtpa market based on
elements, it is ideally suited to fruit and having made its final investment decision supplying chloride-tolerant crops while
vegetable production. The market stands on the 185,000 tpa Beyondie project in SoP’s market is only 7 mtpa. However,
at 7 mtpa but with CAGR of around 5%, December. shifts in diet across both emerging econ-
its outlook is robust. At a proposed 426,000 tpa over 20 omies and the developed world point
A new generation of potash projects years, Agrimin Ltd’s Mackay project is towards greater demand in the coming
have sprouted up across the globe to potentially the largest of the WA projects decade.
meet the changing demand, with a group while Australian Potash Ltd and Reward “There is an enormous shift in diet, in
of ASX-listed companies and executive Minerals Ltd are both pursuing plus- Asia but also in the Western World with
teams leading the charge. 120,000 tpa operations. the move towards healthier food,” Eidne
While Anglo American plc garnered The concurrent development of half a said. “We all see that shift in the super-
the most headlines after swooping for the dozen projects could send alarm bells market with more healthy options and
Gina Rinehart-backed Sirius Minerals plc ringing over their impact on supply/de- an emphasis on high-quality fresh food.
and its North Yorkshire polyhalite project mand balances, but Argonaut Securities For instance, the US’ avocado consump-
in the UK, a cohort of juniors are mak- director Michael Eidne believes the mar- tion has increased eightfold in just a few
ing their own bid for the growing mar- ket can absorb the new arrivals. years.
ket. Salt Lake Potash Ltd, Agrimin Ltd, “Demand for SoP is currently around “In China, this has led to land use
Kalium Lakes Potash Ltd, Reward Min- 7 mtpa with CAGR of 2.5%,” Eidne told changes from broad acre to much more
erals Ltd and Australian Potash Ltd are Paydirt. “If you look at the sequencing of intensive, greenhouse style farming in
all developing potash plays on the vast the WA projects, they would all fall within response to demand shifts.”
salt lake systems of Western Australia. that CAGR over the next decade. The main source of SoP is currently
Meanwhile ASX-listed Danakali Ltd and “Farmers also find it very difficult to via the Mannheim process which takes
Kore Potash plc are focused on projects procure SoP so there is a market there. a MoP feedstock through a costly, en-
in Africa. In Europe, Highfield Resources The experience in the Mannheim sec- ergy intensive process to produce SoP.
Ltd and Davenport Resources Ltd have tor [which makes up 70% of current SoP Eidne said Mannheim SoP producers
their own potash development plans. production] is that the market expands to were coming under increasing pressure
The WA juniors have made remarkable take the supply. So, I don’t think there will to change their approach.
progress in just a few years. be any flooding of the market. SoP is a

aUSTRaLIa’S PaYDIRT MaY 2020 Page 23